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2. The trial balance of Liberty Limited includes the following accounts and amounts as at 30 June 2019: Amount ($) Cash 300,000 Inventory 400,000 400,000
2. The trial balance of Liberty Limited includes the following accounts and amounts as at 30 June 2019: Amount ($) Cash 300,000 Inventory 400,000 400,000 Accounts receivable 40,000 Provision for doubtful debts Prepaid Rent Property, plant and equipment Accumulated depreciation - property, plant and equipment Accounts payable 100,000 300,000 60,000 200,000 Revenue received in advance 100,000 Loan payable Provision for long service leave Revenue (net) 400,000 100,000 1,000,000 400,000 Salaries and Wages Long service leave expense Provision for doubtful debts expense 100,000 40,000 Rental expense 100,000 60,000 Depreciation expense - property, plant and equipment Additional information: None of the long service leave has been paid. It is not deductible for tax purposes until it is paid All salaries and wages have been paid Only rent paid is allowed as a tax deduction. Amounts received from sales, including those on credit terms, are taxed at the time the sale is made. as at year end and are deductible for tax purposes. Tax deduction for bad debts is allowed only when the amount is written off as bad debt. Revenue received in advance was taxed on a cash basis at the time of receipt. Property, plant and equipment is depreciated on a straight-line basis over five years, after which time, it is not expected to have any residual value. For tax purposes, it can be fully written off over three years Tax rate is 28% Required: Prepare journal entries to account for income tax for Liberty Limited for the year ended 30 June 2019 in accordance with the relevant accounting standards
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